Within the banking industry, losses due to kiting and check fraud have been rapidly increasing. New financial marketing strategies and institutional policies providing for accelerated customer availability schedules have contributed to the opportunity for increased kiting and check fraud. Additionally, the availability of technology such as personal computers and desktop publishing systems has allowed kiting schemes to be perpetrated more easily and has allowed perpetrators to avoid detection for longer periods of time or to evade detection altogether.
Reductions in staffing levels have also contributed to increased opportunities for kiting and check fraud. Fewer research analysts are available to handle the large volume of kite suspect accounts identified by previously developed kite suspect detection systems. The laborious effort involved in gathering suspect transactions, analyzing and researching the transactions, and pulling copies of the transactions to verify a suspected kite requires a considerable amount of time. As a result of the workload volume and reduced staffing, losses are often incurred before the check kite is identified.